Collateral is something of value that by agreement becomes the property of the lender if the borrower defaults.

Name: Collateral is something of value that by agreement becomes the property of the lender if the borrower defaults.
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This statement is true. Collateral serves as security for the lender in case the borrower defaults on the loan. If the borrower fails to repay the loan, the lender can claim the collateral as payment.

Collateral Is Something of Value That by Agreement Becomes the Property